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ROSEBANK UK’s largest potential oilfield inches closer to approval
CITY COULD REQUIRE EQUIVALENT OF FIFTEEN SHARDS OF ADDITIONAL OFFICE SPACE IN NEXT TWENTY YEARS JAMES SILVER THE CITY OF LONDON could need as much as 20m square feet of additional office space by 2042, according to a new report, as corporates continue to invest in higher-quality headquarters. The report, conducted by Arup and Knight Frank, finds that office tenants are “seeking a stepchange in the quality of space” that they offer employees, as they bid to rebuild office-based working after the pandemic. The two firms modelled three differing scenarios of the City’s future, with a ‘hybrid peak’ middle scenario resulting in an additional 60,000 jobs in the Square Mile and 13m additional square footage. The Shard in London
Bridge contains just more than 1.3m square foot. Whilst the pandemic saw many predict a significant slowdown in the office market, a host of projects have been given approval over the past two years. Amongst the skyscrapers already approved are two new additions to Gracechurch Street and a 56-storey building on Leadenhall Street. Part of the requirement for additional space comes from an increased number of jobs in the Square Mile, with the Greater London Assembly anticipating around 85,000 jobs to be added in the City by 2041. The City of London Corporation, which commissioned the report, said it would look at the report’s recom-
mendations to fast-track planning applications to retrofit existing office space for environmental reasons as well as introduce “a greater mix of uses” to parts of the City. The report also suggested the City “continue to promote and invest in... [the] workplace experience” which focuses on improvements in the public realm. The Corporation could also consider business rate relief or other targeted measures to encourage the return of long-term vacant sites into use. Recent research by Knight Frank suggested that some 47 per cent of multinational firms are looking to replace their corporate headquarters in the next three years, with talent attraction and retention the top priority. The chair of the Corporation’s planning and transport committee Shravan Joshi said: “We are not only on the right track to meeting the amount of office space demand in the City, but also delivering the right type of space.”
EXCLUSIVE
NICHOLAS EARL THE UK’s largest undeveloped fossil fuel field – home to potentially 500m barrels of oil and gas – is set to be approved by regulators within the next two weeks, City A.M. understands. The North Sea Transition Authority (NSTA) and the Offshore Petroleum Regulator for Environment & Decommissioning are due to sign off on the project, known as Rosebank, before it is sent to energy secretary Grant Shapps for final approval. Following the regulators’ approval, it is understood that the oil firms
backing Rosebank, Equinor and Ithaca will release their final investment decisions. The Norwegian energy giant did not offer a timeline for the project but a spokesperson told City A.M. that Rosebank could “counteract the decline in domestic oil and gas production” and contribute to “UK and European energy security”. Ithaca declined to comment, but City A.M. understands that while it was initially unsure about its role in the project, it is now more upbeat about the future of the project following recent talks with the government. The NSTA and the government both declined to comment.
Former supermarket supremo: There’s no evidence of grocer profiteering EXCLUSIVE
LAURA MCGUIRE THE FORMER boss of Sainsbury’s has roundly rejected claims that British supermarkets are profiteering during the cost of living crisis, arguing that the government and regulators should focus on helping
those in need instead of considering “interfering in markets”. “This idea that [supermarkets] are somehow profiteering in these circumstances… it doesn’t even pass a basic smell test,” Justin King (pictured) told City A.M. Chancellor Jeremy Hunt met with supermarkets last month over
concerns about the current cost of living, and the Competition and Markets Authority (CMA) has also opened an investigation into whether a lack of competition is contributing to grocery prices being higher than they would be in a well-
functioning market. However, King, who served as the boss of Sainsbury’s for 10 years until stepping down in 2014, said that both Tesco and Sainsbury’s reported a decline in their profit margins in their most recent financial results.
“There is no profiteering,” King said. “It is not grounded in the reality of publicly available and reported numbers.” “I would encourage the CMA not to respond to the political conversation and focus on the facts, which is what their job is supposed to be,” he said.
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